||Latvia Business News: Archive 2003-2006
Wednesday, the 21st of June, 2006
Tax incentives to be evaluated
Latvian Association of Computer Technologies suggests to apply personal income tax allowance worth LVL 800 for computer engineering, software and broad-band wireless Internet connection purchases in order to promote computerization in Latvian households. According to Eurostat, 30 per cent Latvian households owned personal computers in 2005, whereas in old European Union member states 63 per cent of households had computers. Thus Latvia is significantly behind use of Internet in the EU. Representative of the Latvian Ministry of Finance Anda Orehova supports the suggestion, however she thinks it will be difficult to administer allowances.
Tuesday, the 20th of June, 2006
Higher VAT would slow down consumption
Latvian economists believe that increase of consumption taxes, which is one of the inflation promoting factors, may not give the desired effect in control of consumption. At the moment the rate of VAT in Latvia is the lowest in Central and Eastern Europe. Since the International Monetary Fund encouraged Latvian government to decrease internal demand to control overheating of economics, politicians discuss possibility to decrease personal income tax from 25 per cent to 15 per cent. However, that would allow inhabitants of Latvia to spend more, which, as Latvian Minister of Economics Aigars Stokenbergs agrees, is not advisable in the present economical situation.
Monday, the 19th of June, 2006
The current account deficit in Latvia in January-April 2006 was EUR 594 million, which is by EUR 167 million more than in the same period of last year. An increase of negative balance of products by EUR 340 million affected current account deficit. Latvian export increased by 11 per cent or EUR 145 million, and import by 25 per cent or EUR 485 million. In total Latvia received EUR 177 million from the European Union, including EUR 94 million as subsidies for farmers, however, the country paid EUR 54.28 million in the EU budget. Latvia gained EUR 590 million as foreign investments, which covered 72 per cent of the current account deficit. Latvia invested abroad EUR 160 million.
Monday, the 19th of June, 2006
External trade increases by 20 per cent
Statistical data show that in January-April 2006 the turnover of external trade in Latvia reached EUR 3.88 billion. The main export market was Lithuania, where products worth of EUR 48.99 million were sold or 13.3 per cent of total export, the second main market was Estonia, EUR 46.41 million or 12.6 per cent, and the third Germany with EUR 33.07 million or 9 per cent. Volume of export to Germany reached EUR 95.8 million or 14.6 per cent, to Lithuania EUR 84.47 million or 12.9 per cent, and to Russia EUR 59.76 or 9.1 per cent. The volume of chemical products, agricultural and food products, as well as plastics, in the export structure significantly increased. The proportion of furniture, transport and chemical products in imports structure grew as well.
Biznes & Baltija
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